Amidst the backdrop of global climate change, it is imperative to comprehend the intricate connections among surface water, vegetation, and climatic shifts within watersheds, especially in fragile, arid ecosystems. However, these relationships across various timescales remain unclear. We employed the Ensemble Empirical Mode Decomposition (EEMD) method to analyze the multifaceted dynamics of surface water and vegetation in the Bosten Lake Watershed across multiple temporal scales. This analysis has shed light on how these elements interact with climate change, revealing significant insights. From March to October, approximately 14.9–16.8% of the areas with permanent water were susceptible to receding and drying up. Both the annual and monthly values of Bosten Lake’s level and area exhibited a trend of initial decline followed by an increase, reaching their lowest point in 2013 (1,045.0 m and 906.6 km2, respectively). Approximately 7.7% of vegetated areas showed a significant increase in the Normalized Difference Vegetation Index (NDVI). NDVI volatility was observed in 23.4% of vegetated areas, primarily concentrated in the southern part of the study area and near Lake Bosten. Regarding the annual components (6 < T < 24 months), temperature, 3-month cumulative NDVI, and 3-month-leading precipitation exhibited the strongest correlation with changes in water level and surface area. For the interannual components (T≥ 24 months), NDVI, 3-month cumulative precipitation, and 3-month-leading temperature displayed the most robust correlation with alterations in water level and surface area. In both components, NDVI had a negative impact on Bosten Lake’s water level and surface area, while temperature and precipitation exerted positive effects. Through comparative analysis, this study reveals the importance of temporal periodicity in developing adaptive strategies for achieving Sustainable Development Goals in dryland watersheds. This study introduces a robust methodology for dissecting trends within scale components of lake level and surface area and links these trends to climate variations and NDVI changes across different temporal scales. The inherent correlations uncovered in this research can serve as valuable guidance for future investigations into surface water dynamics in arid regions.